Mid-Market multiples hit historically high levels in the first quarter 2018
The increase in multiples is similar regardless of size of the transaction. It is also linked this quarter to the high prices paid by private equity firms to 10.0x EBITDA. Prices paid by strategic buyers are slightly up at 9.2x EBITDA, in line with quoted mid-market companies.
On the other hand, the M&A Mid-Market activity in the Eurozone has seen a sharp decline of 16% in volumes (28% in value) compared to the previous quarter and by -17% in volume (and -23% in value) compared to the first quarter of 2017.
Download the complete Index version: Indice Argos March 2018
About Argos Wityu
Argos Wityu is an independent European private equity group with offices in Paris, Milan, Frankfurt, Luxembourg, Brussels and Geneva. Since its creation in 1989, Argos Wityu has carried out more than 75 transactions focusing on management buy-outs and buy-ins in small and medium companies. Argos Wityu typically takes majority stakes ranging from €10m to €60m in companies with revenues of €20m to €400m.
With €960m under management, the firm has developed a track record of unusual, complex and off market transactions where the firm’s combination of local presence and international experience is able to add value to the small and medium-sized businesses it invests in.
About Epsilon Research
Epsilon Research developed the first online platform for the management of non-quoted M&A transactions, aimed at professionals: M&A advisers, private equity funds, valuators, corporates. The Epsilon Platform includes data, analysis reports, software tools and services essential to private company valuation / deal management:
(1) EMAT, the largest database of European private company transaction multiples, with detailed analysis of 6,000+ M&A deals, ranging from €1m to €500m in value, covering all industry sectors; (2) Indices and studies published regularly by Epsilon, such as the Argos Index; (3) Cloud-based software for M&A contacts and project management (“M&A CRM Suite”); and for valuation projects (comparables, private equity fund portfolios).
About the Argos Mid-Market Index
The Argos Mid-Market Index measures the evolution of European private Mid-Market valuations. Based on the median of historical EV/EBITDA multiples, on a six-month rolling basis, it is carried out by Argos Wityu and Epsilon Research, and published every three months. The transaction sample fulfils the following criteria:
- Mid-Market companies (equity value between €15m and €500m),
- Target based in a euro zone country,
- Acquisition of a majority stake,
- Specific industries excluded (financial services, real estate, high-tech).
Next Argos Mid-Market Index: Monday 16 July 2018
Argos Wityu Contacts : Karel Kroupa
Press : Violaine Charpentier, email@example.com, Tél. +33 1 53 67 20 50
Epsilon Research Contact : Grégoire BUISSON, firstname.lastname@example.org, Tél. +33 1 47 70 30 24